ANNUAL REPORT

Stredoslovenská vodárenská prevádzková spoločnosť, a. s. Annual Report StVPS, a. s. contents 2016

Main Indicators of the Production Innovations 42 Basic data 4 and Supply of Drinking Water 16 Responsibility 30 Object Of Activities 5 Employees 31 Sewage Treatment Plants 43 Water Meters 16 Age Structure of the Employees 32 Water Preparation Plants 43 Sewage and Treatment 18 Statutory Bodies Educational Structure of the Employees 32 Pumping Stations and Water Reservoirs 44 Survey and Measurement Internal Communication 33 Sewage Network 44 of the Company 6 on Sewer Network 18 Staff Educating 33 Information Systems and APCS 44 Water System Breakdowns 19 Safety and Health Care 34 Power engineering 45 Key Data 8 Water Quality 20 Social Dialogue 35 Editorial 10 Drinking Water 21 Financial Part 46 Wastewater 21 Waste Management 36 Comments on Financial Organizational Structure 12 Investment Implementation 21 Results in 2016 47 ISO 38 Balance Sheet 50 Our Services Customers 22 Profit and Loss Statement 52 14 Structure of the Customers 23 Water Production 15 Cash Flow Overview 53 Customer Services 24 Environmental Protection 40 Water Management 15 What Solutions Do We Use? 41 Independent Auditor’s Report 54 12 Largest Customers in 2016 26 Water Losses 15 Education and Training, Report of the Supervisory Board 58 Satisfaction Surveys 28 Educational Activities 41 Communication 29 Contacts 60

2 ANNUAL REPORT 2016 3 object of activities

• operation of the public water supply • power distribution systems of 1st up to 3rd categories, • purchase of goods for the purpose of • operation of the public sewer systems of its sale to other trade license holders 1st up to 3rd categories, (wholesale trade), • consulting, technical and professional • purchase of goods for the purpose of its assistance in the area of production, sale to final consumer (retail trade), treatment and supply of drinking and • intermediation in trade and services, industrial water, operation of the water • elaboration of documentation and proj- basic supply systems, sewer systems and ects of simple buildings, small buildings wastewater treatment plants, and changes of these buildings, • cleaning of water pipelines and sewer lines, • realization of simple buildings, small • execution of inspections of sewer buildings and their changes systems by instrumental techniques, • realization of buildings and their changes, data • detection of hidden water leaks by corre- • execution of water management and lation and electro-acoustic techniques, engineering, Trade name: • setting of water supply and sewer • realization of activities of a site manager, Stredoslovenská vodárenská prevádzková spoločnosť, a. s. systems and armatures, a determination • realization of building inspection activities, of contact points for connecting of instru- • engineering construction, • supply and installation of chlorine equip- Company seat: mental techniques, • measurement of wastewater volumes on ment and dosing devices for chemicals, Partizánska cesta 5, 974 01 Banská Bystrica measuring objects and sewer systems with • repairs, service, maintenance and execu- the determination of immediate or cumula- tion of professional inspections and Legal form: Joint-stock company tive flow by instrumental techniques, professional testings of chlorine equip- • physical-chemical, radiological, micro- ment and dosing devices for chemicals, Identification No: 36 644 030 biological and hydro-biological analyses • rental of machines, instruments and of drinking, industrial and waste waters, equipment, VAT reg No: SK 2022102236 including technological analyses of water, • public procurement, • execution of water tightness tests of • national freight road transport, Capital stock: € 34,000.00 water management objects and equip- • rental of real estates ment, • repair and servicing of all types of pumps • business activities in the area of disposal • realisation of revisory and pressure tests Trade register of non-dangerous waste, of pressure tanks of District court in Banská Bystrica, • execution of technical inspections of • repair, installation, maintenance and section: Sa, Insert No: 840/S pipelines, service of electrical equipment • repairs and installations of water meters, • carrying out of technical inspections and Registred on: • task designs, solutions and evaluation testing of specified electrical equipment January 1, 2006 of hydro-geological survey, engineering- • organizing of training courses and seminars geological survey and geological environ- • carrying on training courses and seminars ment survey, • fire safety engineer • electricity production in small hydroelec- • accommodation and catering service in tric power station with the output up to these accomodation establishments 5 MW,

THE COMPANY HAS NO ORGANIZATIONAL UNIT ABROAD.

4 ANNUAL REPORT 2016 5 statutory bodies of the company December 31, 2016

Board of Executive management Directors of the company

CHAIRMAN OF THE MANAGING DIRECTOR BOARD OF DIRECTORS Ing. Peter Martinka Philippe Guitard ECONOMIC DIRECTOR Ing. Peter Dobrý MEMBERS OF THE BOARD OF DIRECTORS DIRECTOR FOR PRODUCTION- Ing. Martin Bernard, MBA OPERATING ACTIVITIES Ing. Róbert Tencer Ing. Robert Javorčík JUDr. Soňa Šáliová Ing. Peter Martinka COMMERCIAL DIRECTOR Ing. Mária Vicianová

SUPERVISORY BOARD DIRECTORS OF PLANTS Tomáš Paclík Ing. Pavol Badinský Roman Szabó plant 01 Banská Bystrica Etienne Petit Jozef Hegeduš Ing. Ladislav Solkový Marián Detvan plant 02 Lučenec JUDr. Roman Dula JUDr. Vladimír Andrejovský plant 03 Prievidza

Ing. Branislav Jurík plant 04 Rimavská Sobota

PaedDr. Zoltán Balla plant 05 Veľký Krtíš

Ing. Milan Vlček plant 06 Zvolen, Žiar nad Hronom

6 ANNUAL REPORT 2016 7 54,997,268 € Turnover of the Company 1,175,246 € Profit after taxation 655,691 Number of supplied residents key 1,092 Number of employees 39,607,000 m3 Total production of own water data(December 31, 2016) 4,482 km Length of operated water supply system 22 Number of water preparation plants 51,668,000 Purified sewage water in m3/year 1,014.9 km Length of operating sewerage network 41 Number of wastewater treatment plants 114,850 Number of contracted customers 1,626 Number of phone calls via Customer Line (monthly average)

8 ANNUAL REPORT 2016 9 editorial

Dear shareholders, of water and sewerage pipelines. Major “Biodiversity Conservation on the Premises business partners, repairs are carried out in coordination and of StVPS, a.s.” aimed at the adjustment of close cooperation with mayors of the towns our premises in order to increase the natu- customers, and villages concerned to ensure the neces- ral diversity. In co-operation with the civic sary synergy. All this activity related to the association CEEV Živica, this school year we and colleagues, restoration of infrastructure assets places started a unique school project “The Secret considerable demands on funds. Therefore, Life of the City”, in which 50 schools from I am glad to inform we are constantly increasing the efficien- all over Slovakia will map the biodiversity of cy of individual activities and continuously their city using a special mobile application. you again about the implementing rationalisation measures in And what are our next plans for the fu- results of our work many areas, such as in power and transport ture? I would briefly summarise them in a industry. few points that are closely related to each through the Annual With regard to investments in infrastruc- other. These are: modern technologies, the Report for 2016. ture, I have to mention the owner company sustainability of existing networks, a rea- Stredoslovenská vodárenská spoločnosť, a.s., sonable service price/quality ratio, cooper- Stredoslovenská vodárenská prevádzková which covers all this activity. Thanks to this ation with regions, self-governments and spoločnosť, a.s. (StVPS, a.s.) has long been company, many projects co-financed by the their support, and, of course, environmental ranked among the largest employers in the European Union have been implemented protection and safety of the water supply region. At present, we provide work for 1,092 successfully in Central Slovakia. With re- network. Constant investing in the moderni- employees of all professions, ranging from spect to the actual construction of invest- sation of technologies is inevitable, because workmen to highly qualified specialists. ment buildings, we have been supporting it will enable us to provide services in max- The main subject of our activity is the sup- the owner company to the maximum ex- imum quality in the future, to the satisfac- ply of drinking water and the provision of tent, as evidenced by a few dozens of invest- tion of our customers, while contributing to waste water drainage and treatment. We ment buildings constructed in recent years. environmental protection. offer water infrastructure management at a Our company’s investment expenditure is I thank all collaborators, colleagues, busi- high professional level; we are a specialist in mainly directed to operating assets, where ness partners, and shareholders for cooper- outsourcing services related to the produc- we have focused on the renewal of spe- ation. I am grateful for the constant support tion and distribution of drinking water and cial motor vehicles, such as drinking water of the members of the Board of Directors waste water drainage and treatment provid- tanks, special sewage vehicles or systems and the Supervisory Board, and I believe that ed for municipalities, industrial partners or for conducting pipeline video inspection. By I will be able to evaluate the year 2017 as a service sector customers. means of these, the most basic means for us, successful one. In 2016 our company achieved a turnover of we provide either alternative supply to the EUR 54.997 million and the economic result population, collection and removal of waste (profit) after tax amounted to EUR 1.175 water or other activities. million. Environmental responsive behaviour is one In addition to ensuring the operational ca- of the basic principles of our company, and pacity of the infrastructure, our effort is also we pay close attention to the programmes to plan and systematically repair the com- aimed at biodiversity support. We success- plete parts of the most defective sections fully continue to implement the project Ing. Peter Martinka general director StVPS, a. s.

10 ANNUAL REPORT 2016 11 organizational structure General Assembly Board of Supervisors Board of Directors General Director

Division of Division of Division of Division of General Economic Commercial Director for Production Director Director Director Operating Activities

GENERAL DIRECTOR ASSISTANT SECRETARIAT DEPARTMENT FOR WATER DEDUCTIONS REGISTRY AND ASSISTANT OF DPOA MARKETING AND COMMUNICATION AND WATER-METERS DEPARTMENT FOR TECHNICAL DEPARTMENT TAXES DEPARTMENT BACK OFFICE AND ASSETS OPERATING ACTIVITIES CRISIS MANAGEMENT DEPARTMENT FINANCE DEPARTMENT & LIABILITIES DEPARTMENT QUALITY MANAGER PROPERTY CARE ACCOUNTING DEPARTMENT FRONT OFFICE PROJECT MANAGER DEPARTMENT ASRTP AND GIS BOARDING HOUSE VODÁR DONOVALY PROPERTY EVIDENCE DEPARTMENT CUSTOMER CENTERS: CONTROL DEPARTMENT 01 Banská Bystrica PLANTS: 02 Lučenec 01 Banská Bystrica SUPPLY DEPARTMENT ADMINISTRATIVE AND LEGAL DEPARTMENT 03 Prievidza 02 Lučenec QUALITY CONTROL DEPARTMENT 04 Rimavská Sobota 03 Prievidza CONTROLLING DEPARTMENT 05 Veľký Krtíš 04 Rimavská Sobota DEPARTMENT OF INFORMATION 06 Zvolen, Žiar nad Hronom 05 Veľký Krtíš TECHNOLOGIES PAYMENT REPORT DEPARTMENT 07 Brezno 06 Zvolen, Žiar n/Hronom HUMAN RESOURCES INTERNAL AUDIT REPORT OSHA CALL CENTRUM

12 ANNUAL REPORT 2016 13 We bring more than good drinking water. Besides our main activities, such as drinking water pro- duction and supply and sewage removal, we are focusing more and more on increasing the share of services for external customers. We offer wa- ter infrastructure management at a high profes- sional level. We provide laboratory analyses of drinking, service and waste water in accredited laboratories.

our to the previous year, the volume of water water invoiced in 2016 was lower by 1.6 % than in 2015. The reduction in the volume of water production invoiced has resulted, among other indica- tors, in a decrease in the specific consump- The company’s water management facilities tion of water in households. In 2016 the services produced 39,607,000 m3 of drinking water, specific consumption was 71.3 l/person/ Stredoslovenská containing 12,185,000 m3 of surface water day, which means a reduction by 1.0 l/per- and 27,422,000 m3 of groundwater. Com- son/day compared to 2015. vodárenská prevádzková pared to 2015 it is less by 1,0130,000 m3 of spoločnosť, a.s., produced water, which is related to the re- duced volume of water supplied or invoiced water provides services to customers. Under applicable legislation, for the quality of the drinking water supplied losses was provided in 22 water treatment plants when necessary. The large water treat- The company’s activity in the field of water 655 691 ment plants Hriňová, Málinec, Klenovec losses was mainly focused on the repairs of residents. and Turček were used for the treatment of water pipes. Water losses were most caused surface water from water reservoirs. Under- by hidden water leaks, the location of which ground water sources where water qual- is complicated and requires the use of state- ity was satisfactory and water treatment of-the-art instrumentation and technologi- was not necessary were used for supplying cal procedures to detect and locate them as customers with drinking water from the accurately as possible. Pohronský Group Water Supply System. Centralised management of searching for Smaller water treatment plants were also hidden water leaks and the purchase of cut- used for water taken from watercourses ting-edge search technology have signifi- as necessary, and water treatment plants cantly contributed to locating hidden water for groundwater were also used if its qual- leaks in our company since 2007. This activi- ity was unsatisfactory. In 2016 the water ty is carried out by 6 working groups in Fault treatment plants operated by the company Search Department, namely the groups in treated a total of 14,410,000 m3 of water. Banská Bystrica, Brezno, Lučenec, Prievidza, Rimavská Sobota, Veľký Krtíš, Zvolen, and Žiar nad Hronom. In 2016 the Fault Search water Department staff examined 1,612 km of wa- ter mains and located 796 faults. Measure- management ment work worth EUR 3,439.00 was carried out for external customers. With regard to water consumption, the volume of water invoiced or supplied to customers was reduced compared to 2015, which was also reflected in other indicators of water production and supply. Compared

14 ANNUAL REPORT 2016 15 our services main indicators of the production and supply of drinking water

4,482 116,201 765 229 22 655,691 39,504 14,187 25,317 12,808 32.4 length number length number number number water for water uninvoiced, water invoiced, water losses in the share of water of the water of the water of the water of pumping of water of supplied implementation, in thousand in thousand pipe network, in loss from the distribution junctions junctions, devices treatment residents in thousand m3/year m3/year thousand m3/year water for network, in km plants m3 realization in km in%

water water meters system UP TO 31/12/2016, breakdowns 118,199 PIECES OF THE BILLING

WATER-METERS WERE SET. Compared to the previous year, in 2016 the number of faults in the water mains were In 2016, 20,198 pcs of water meters were re- increased by around 7.5% in total. The in- placed in total, of which 19,422 pcs of water crease occurred in winter and spring months meters during periodic replacements and as a result of soil defrosting and changing 776 pcs were replaced for reasons other than weather conditions. water meter damage, a floor water meter, The total number of 2,709 faults included replacement upon customer’s request, etc. 1,712 faults in inflow and distribution pipes 17 pcs of water meters were removed and and 997 in the connections. The number of sent for official inspection upon customer’s faults that needed to be removed by excava- request, of which 14 water meters were sat- tion work was 1,305. isfactory and 3 water meters were unsatis- As part of emergency prevention, minimum factory. night-time consumptions are monitored In 2016 a total of 16,549 water meters were and hidden field leaks are searched for on a repaired by an external supplier, as the own regular basis. In 2016, 43 data loggers and water meter repair shop was dissolved in 2015. 23 noise sensors were used to monitor the minimum night-time flow rates and detect possible faults in critical supply zones.

16 ANNUAL REPORT 2016 17 our services collecting and main treatment indicators of waste water 1,014.9 34,577 57 253.6 41 410,401 length of number number of length of number of number of sewer system of sewer pumping sewer system wastewater inhabitants in km laterals stations in km treatment connected to the 410,401 inhabitants plants sewer system are connected to the sewage system with a total length of 1,014.9 km. of collecting Compared to 2015, and treatment 20,948 395,137 51,668 invoiced number of treated the volume of treated of wastewater wastewater inhabitants wastewater water increased in thousand connected in thousand m3/year to WWTP m3/year by 2,498,000 m3 year-on-year, representing 5.08 %

surveyed and subsequently integrated into cially in winter and spring months, as a result survey and the Geographic Information System (GIS). of washing the materials off the roads as In 2016, both TV camera systems were used well as due to the poor technical condition of measurement to inspect the technical condition of sew- some sewerage system sections. erage pipelines on already used as well as Other causes of accidents included damage of the sewer new constructions. IPEK system, which also to the pipeline system due to the influence enables the measurement of deformations of traffic load as well as the indiscipline of network of flexible pipelines, has proved to be useful some producers. for new sewerage systems. In 2016, a total of 776 faults were removed The smoke testing technology of sewer net- from gravity sewer networks, including 529 works continued to be successfully used in clogged pipelines and 247 structural fail- the area of sewer network exploration and sewage ures. Structural failures contained 82 fail- detection of connected producers. This tech- ures directly detected in sewers, 27 failures nology is capable of detecting faults in sew- system in sewerage connections and 138 failures erage pipes and sewer network structures, in sewerage constructions. A total of 260 as well as unauthorised connections of real breakdowns failures were detected in pressure sew- estate and unauthorised connections of rain ers, including 258 failures in constructions water to the separated sewerage system. In 2016 seals were the most frequent cause (pumping stations) and 2 failures in a pres- In 2016 the sewer network structures were of accidents in the sewerage network, espe- sure pipeline.

18 ANNUAL REPORT 2016 19 drinking realisation of water investments Drinking water quality in our company is Although making investments for other in- controlled by accredited laboratories accord- vestors is not one of our main activities, we ing to ISO/IEC 17025:2015 and meets the also try to increase our company’s revenues requirements of current legislation in force. in this way every year. For 2016 we set a plan In addition to basic physicochemical, mi- of revenues from this activity of EUR 1,019 crobiological, and biological indicators, the thousand, and the owner company StVS, a.s. presence of metals, pesticides, and organic was the investor of the respective investment substances is monitored in drinking water shares in most cases. according to Slovak technical standards. The Construction work was carried out during health safety of drinking water is ensured not the year in accordance with the developed only by the quality control, but also by the time and financial schedules. The buildings system of water resources control, protec- contracted in previous years were mostly con- tion of water supply facilities and regular dis- structed in the first half of the year, and part infection. In 2016, 3,664 samples were taken of their construction also continued in 2016. to monitor microbiological indicators and In 2016, besides the buildings under con- 3,713 samples were taken to monitor physic- struction, 8 new contracts for the realisation ochemical parameters in the Quality Control of investment shares were concluded with Department laboratories. In total, 109,489 the investor StVS, a.s. and one contract was analyses were carried out at the consumer’s concluded with C-bau, spol. s r.o., the investor facilities on drains from water reservoirs and belonging to Veolia group. treatment plants. At the same time, 2,164 Similarly to the previous period, even in 2016, samples were taken from resources, where we made for the owner company linking of 67,520 analyses were performed. water supply and sewerage connections to the public water mains and public sewerage system under a special contract. wastewater The most important buildings in financial terms included: “Tajov – Water Supply from the water The accredited waste water laboratories in Additional Water Resource Tajov” and “Bzen- Zvolen, Banská Bystrica and Lučenec provide ica - Reconstruction of the Water Mains - 1st for the implementation of the programme Stage”, which are scheduled to be completed for monitoring the quality of waste water in 2017. Other major construction projects drainage and treatment in sewer systems that started to be implemented in 2016 were: and treatment plants administered by St- “Lučenec, part Opatová, Jegorovová and Borhy- quality VPS a.s. according to ISO/IEC 17025:2015. ho streets - Water Mains and Sewerage Sys- In 2015, 8,798 samples were taken at in- tem” and “Detva, C Sewage Water Collector”. dividual stages of waste water treatment In total, our company realised revenues of EUR plants and unclean outflows. 54,706 analy- 1,095.56 in the field of making investments ses were performed. The range and number for other investors in 2016, representing the of samples are determined by Decree No. fulfilment of the developed plan of revenues 315/2004 Coll. and related applicable reg- for the respective year for 104.8%. The trend ulations. At the same time, 1,265 samples of increasing the proportion of outsourcing from producers were examined in our labo- contracts to external companies continued in ratories, representing 4,921 analyses. performing the construction work itself.

20 ANNUAL REPORT 2016 21 structure of the customers customers January February March April May June July August September October November December Average Total As a customer-oriented company, we place emphasis The number 114,502 114,502 of customers

on constant improvement of customer services 114,170 114,166 114,191 114,275 114,385 114,499 114,546 114,690 114,690 114,782 114,829 114,502 and access to the customer, either by introducing new households - 104,048 90.87% technologies or expanding the range of services. individual customers 103,737 103,719 103,740 103,829 103,927 104,036 104,077 104,173 104,226 104,318 104,356 104,437 We want to be a good partner for the customer by households - apartment buildings, 2,309 2.02%

identifying needs, opinions, desires. cooperatives 2,308 2,309 2,313 2,309 2,308 2,309 2,311 2,305 2,307 2,305 2,307 2,319

others 8,145 7.11% 8,125 8,138 8,138 8,137 8,150 8,154 8,158 8,165 8,157 8,159 8,166 8,094

22 ANNUAL REPORT 2016 23 27,41 % up to now not mentioned issues Data about all contacts 26,83 % per month 6,68 % billing water supply, sewerage, pressure, in the customer water quality and damage matter of: 8,27 % connections and water meters services 30,81 % contracts Contacts total: 7 815

23,62 % water supply, sewerage, pressure, water quality and Data about damage all calls 29,83 % 7,01 % up to now per month connections and not mentioned water meters issues in the matter of: 10,81 % contracts

28,73 % billing Contacts total: 1 626

The customer service staff communicate of charge in the comfort of their homes. with the customers on the telephone number Simple registration on the website, contact- 0850 111 234 during the working hours from ing the customer service or making a person- Monday to Friday from 7.30 a.m. to 3.30 p.m. al visit are enough to get the access. The customers are usually provided with Water and sewer invoices can be paid by general and commercial information; the cash at the cash desk of customer centres Stredoslovenská vodárenská prevádzková spoločnosť, a.s. has a customer service department also serves as by cashless payment via POS terminal, by network of customer centres providing services related to the sup- a 24-hour hotline for reporting faults. bank transfer as well as payment made at On the telephone number 0850 111 234, the groceries of COOP Jednota (UNIKASA ply of drinking water and waste water drainage. The opening hours customers can get information about water service). of 8 customer centres are tailored to the needs of our customers and sewer rates, offtake points, contracts We support electronic services and elec- and their main activity includes the conclusion of commercial con- and invoices, handling lodged complaints, tronic communication. We have successfully faults reported. introduced the “Invoice Sending to E-mail” tracts and addenda thereto, changes in the payment of advances They can report by phone the status of service. and invoices, receiving and handling business complaints, receipt the water meter, ask for a change in the When activating the SMS info service, of cash payments and information on other services provided. amount of the advance payments, request customers of the Stredoslovenská vodáren- an invoice copy. ská prevádzková spoločnosť, a.s. receive An online customer account is available to free information on water supply stoppages our customers. The customer can track the and accidents on water and sewer pipelines information about their offtake points free directly through their mobiles.

24 ANNUAL REPORT 2016 25 1 2 3 Housing Association Housing owners according District Housing in Banská Bystrica to the delivery point rep. by Association Housing Association in Prievidza in Zvolen 4 5 6 District Housing Housing Housing Association Association Association in Rimavská Sobota in Lučenec in Žiar nad Hronom

7 8 9 F. D. Roosevelt Faculty BYTOS SPOOL, a. s. Hospital and Polyclinics, - Housing Authority Lučenec largest Banská Bystrica PRIEVIDZA, Ltd. 12CUSTOMERS 10 11 12 SBD Town‘s housing Prievidza in 2016 Brezno company heat management Handlová s.r.o. a.s.

Billing Water + Sewerage (in EUR incl. VAT) 12 largest customers of StVPS, a.s., in 2016

Name Company Period Total ID 1/2016 2/2016 3/2016 4/2016 5/2016 6/2016 7/2016 8/2016 9/2016 10/2015 11/2016 12/2016 1 - 6 1 - 12 1 Housing Association in Banská Bystrica 00170071 6,192.83 6,155.89 561,378.29 0.00 0.00 569,841.01 0.00 4,278.93 553,133.22 1,624.36 3,309.47 545,321.49 1,143,568.02 2,251,235.49 2 Housing owners according to the delivery point rep. by Housing Association in Zvolen 00222054 8,491.07 8,093.18 408,312.74 7,676.82 7,939.14 391,935.68 7,881.88 8,450.46 396,646.06 7,191.17 8,502.17 360,532.62 832,448.63 1,621,652.99 3 District Housing Association in Prievidza 00173801 0.00 65.33 355,653.93 0.00 59.88 353,761.53 0.00 4,148.12 349,357.31 0.00 3,095.80 335,431.97 709,540.67 1,401,573.87 4 District Housing Association in Rimavská Sobota 00173916 3,296.29 0.00 266,715.99 3,661.74 0.00 261,625.72 2,254.73 0.00 269,324.04 -405.58 0.00 239,601.21 535,299.74 1,046,074.14 5 Housing Association in Lučenec 00171816 4,916.87 3,451.87 201,928.24 3,132.26 3,816.58 205,464.72 2,065.29 5,787.47 196,462.54 2,478.06 3,615.81 190,105.53 422,710.54 823,225.24 6 Housing Association in Žiar nad Hronom 00176192 23,927.22 17,273.11 163,120.34 19,398.63 18,371.75 157,790.92 17,319.50 18,818.76 159,667.51 17,007.54 21,553.27 137,536.60 399,881.97 771,785.15 7 F. D. Roosevelt Faculty Hospital and Polyclinics, Banská Bystrica 00165549 60,472.60 48,748.56 52,722.38 51,749.40 52,491.02 54,988.50 71,773.38 73,765.87 57,374.22 54,008.01 52,452.69 48,505.25 321,172.46 679,051.88 8 BYTOS - Housing Authority PRIEVIDZA, Ltd. 36313009 2,152.62 1,650.57 163,528.40 1,964.75 1,704.87 164,225.51 1,942.04 1,720.91 165,431.30 1,916.26 3,214.13 152,835.25 335,226.72 662,286.61 9 SPOOL, a.s. 31586392 50,931.26 45,295.60 54,794.65 50,461.26 49,559.26 55,401.20 49,114.52 52,340.08 52,225.52 48,431.83 53,803.82 48,978.11 306,443.23 611,337.11 10 SBD Brezno 00170143 0.00 0.00 151,767.36 0.00 0.00 148,638.19 0.00 0.00 154,333.02 0.00 0.00 139,366.71 300,405.55 594,105.28 11 Town‘s housing company Handlová s.r.o. 36851442 1,914.18 0.00 131,511.54 0.00 0.00 135,423.15 0.00 0.00 135,589.47 587.95 0.00 120,120.57 268,848.87 525,146.86 12 Prievidza heat management a.s. 36325961 27,630.28 27,060.99 50,938.90 27,853.68 28,285.84 45,962.06 22,025.14 23,718.12 45,702.90 24,455.29 25,939.21 43,577.55 207,731.75 393,149.96

26 ANNUAL REPORT 2016 27 36,39 % 7,05 % others others

63,61 % 92,95 % household together household together

structure according to the structure according to the volumes of sales amount of customers

No. of customers Proportion to December 31, 2015 % Invoiced (€) %

CUSTOMERS ALTOGETHER 114,850 100% 52,758,260 100.00% thereof the households - INDIVIDUAL CUSTOMERS 104,437 90.93% thereof the households - HOUSING ASSOCIATIONS 2,319 2.02% thereof households TOGETHER 106,756 92.95% 33,561,387 63.61%

thereof THE OTHERS 8,094 7.05% 19,196,874 36.39%

7,815 4,501 1,626 117,427 average average average customer average billing customer contacts customer visits calls to the call center water meters per month per month per month per month satisfaction survey communication

Customer feedback is important for us, and at each workplace of a customer centre 99.85% of the total number of respondents The customer magazine “Voda pre vás” Current customer information is also posted satisfaction surveys represent a source of and contains 3 closed-ended questions; the were generally satisfied with the approach (in English: “Water for You”) which we on our website www.stvps.com. information for further customer service completed questionnaire is dropped by the and professionalism of our employees. publish twice a year in both electron- Information campaigns in dailies, adver- direction. At our company’s eight custom- customers into a sealed box. Customers prefer personal contact when ic and printed form is a time-tested tising and regular media communication er centres, an internal survey of customer A sample of respondents consists of custom- communicating with StVPS, a.s. (59.62%). source of information for custom- also serve to promote new services. We also satisfaction with the services provided is ers who visit any of the customer centres They are most interested in information re- ers as well as the general public. It organise promotional events in the region on conducted using an inquiry method and a and complete the questionnaire. Customers garding contracts, changes of the owner or especially contains information the occasion of the World Water Day, where specific form of self-completing. can also evaluate their satisfaction with ser- changes in advances (47.38%), and informa- regarding water price and quality, the public is informed about the services we A data collection questionnaire is available vices through the company’s website. tion on water and sewer rates (26.31%). which the customers consider provide, but also about the need for protec- the most important accord- tion of water, water resources and the envi- ing to satisfaction surveys. ronment in general.

28 ANNUAL REPORT 2016 29 The year 2016 was the year of maintaining stable employment, mod- ernising and increasing employee care from responsibility the point of view of human resources of Stre- We are a major employer. At present, we provide work employees for 1,092 employees of all professions, ranging from doslovenská vodárenská prevádzková spoločnosť, a.s. workmen to highly qualified specialists. In the course of 2016, we have increased the num- Environmental responsive behaviour is one of the basic ber of employees, mainly as a result of taking over principles of our company, and we pay close attention the new infrastructure, and on 31 December to the programmes aimed at biodiversity support. 2016 we employed 1,092 employees.

2012 1,110 681 WORKERS number of the 2013 1,111 employee structure employees from 2014 1,088 328 ADMINISTRATIVE STAFF of the working the year 2012 2015 1,088 categories MANAGING STAFF This course is the result of the staff rationalization 83 Physical Status of Employees as at 31 December 2016: 1,092 and streamlining the business processes. 2016 1,092

30 ANNUAL REPORT 2016 31 Age Female Male Together age up to 17 0 0 0 18 - 25 1 24 25 26 - 30 11 32 43 structure 31 - 35 18 41 59 36 - 40 26 91 117 of the employees: 41 - 45 47 142 189 46 - 50 48 161 209 51 - 55 54 133 187 56 - 59 44 139 183 over 60 19 61 80 Total 268 824 1,092

up to 17 0 0 up to 17 internal 18 - 25 1 24 18 - 25 communication 26 - 30 11 32 26 - 30 The employee magazine “Voda je život” (in The project “By Water to Art” was awarded 31 - 35 18 41 31 - 35 English: “Water Is Life”) is an effective tool for the prize “Srdce na dlani” (in English: “Heart in 36 - 40 WOMEN 26 91 MEN 36 - 40 internal communication. We publish the mag- an Open Palm”) for the most popular project azine together with Podtatranská vodárenská “Week of Volunteering”. People voted for pro- 41 - 45 41 - 45 47 142 prevádzková spoločnosť, a.s. four times a year, jects in this category through the website of the 46 - 50 48 161 46 - 50 where we provide information on the current Volunteer Centre and the renovation of the wa- 51 - 55 54 133 51 - 55 events in both companies, the activities of Veo- ter reservoir over Sásová housing estate became lia Group and also interviews with the mayors the most successful among the 10 nominated 56 - 59 44 139 56 - 59 about life in the regions. The corporate intranet projects from the entire Banská Bystrica region. over 60 19 61 over 60 is a source of up-to-date information. 15 employees submitted projects within the Employee Grants programme in 2016. They sub- mitted their projects by filling in the electronic form at www.stvps.sk. Based on selected crite- Education Female Male Together ria, such as the involvement of the employee, educational Not-Completed 5 29 34 the public-benefit character of the project and Primary 4 22 26 its capability of communicating with the public, training of Secondary Vocational 14 391 405 the commission chose seven projects and pro- structure Secondary without A level 2 7 9 vided EUR 3,000.00 for their implementation: Full Secondary Professional 15 144 159 employees 1. MALÝ RYBÁR (“A Little Fisher”) - a fishing club of the employees: Full Secondary General 7 17 24 for children focused on education in sport As part of human resource development, we Full Secondary A level 150 144 294 fishing, ecology, and hydrobiology; pay close attention to both professional and The educational structure of the company resulting Higher Vocational 0 1 1 personal growth of our employees, which we 2. ZDRAVÝ CHRBÁTIK (in English: “Healthy from the production nature and its summary University Degree 70 66 136 Back”) - exercises for children focused on a provide through in-service training. is contained in the following table. Scientific Education 1 3 4 healthy spine and good posture; Each job position requires a special approach in selecting training activities to improve and Total 268 824 1,092 3. HRAVO A BEZPEČNE (“Playfully and Safely”) - activities for preschoolers to promote safe deepen the knowledge of our employees. We 5 29 Not-Completed behaviour on the road; realise that if we want to achieve the set goals we have to invest in increasing qualifi- 4 22 Primary 4. REVITALISATION of the playground at Podbre- zová Kindergarten; cations of our employees and their potential, Secondary Vocational because only a highly skilled and motivated 14 391 5. OBDARUJME BOJOVNÍKOV S RAKOVINOU employee can bring success to the company 2 7 Secondary without A level (“Gifting Cancer Fighters”) - events for Oncol- ogy Department patients; in the future. Due to the transition to the 15 144 Full Secondary Professional new e-mail communication software, all the WOMEN 6. UMENÍM K VODE (“By Art to Water”) - visual 7 17 MEN Full Secondary General adjustment of the water reservoir and employees of management and administra- organisation of a volunteer event at Sásová tive positions were retrained for work with Full Secondary A level 150 144 housing estate; it during 2016. In addition to job-specific 0 1 Higher Vocational 7. ALEJ SLOVENSKÝCH DEJATEĽOV (“Alley of training, we are also striving to develop the language skills of our employees, therefore University Degree Slovak Nation Personalities”) - completion of 70 66 the busts of important Slovak personalities we provide them with English language ed- 1 3 Scientific Education in the square in Rimavská Sobota. ucation, either in group or individual courses.

32 ANNUAL REPORT 2016 33 safety and health care of the employees Occupational safety in Stredoslovenská Education and training of the employees our company, which are obsolete in many vodárenská prevádzková spoločnosť, a.s. is a have reached a higher quality level. Senior cases and thus inadequate in view of the natural part of all work activities at all levels. managers have significantly participated modern perception of occupational safety. Industrial accident rate, the most important in the educational activities of their sub- Fire protection as part of occupational safe- indicator of safe employee behaviour, has ordinates, thus also contributing to more ty and health is already routinely provided at a declining trend, namely there was a 30 % effective dealing with any possible security an excellent level, and no adverse event has fall in the registered industrial accidents threats resulting from demanding water ac- been reported in this area in 2016. compared to the previous year. On the other tivities. In 2016, 42 inspections focused on occu- hand, we have to admit that all industrial ac- Our company constantly improves the safe- pational safety, fire protection and public cidents (6 in total) occurred only as a result of ty of the work environment through its oc- health were carried out by state authorities the employee’s inattention to the situation, cupational safety and health specialists and in Stredoslovenská vodárenská prevádzková underestimating the normal working risk, its contractual partners; we regularly review spoločnosť, a.s., as evidenced by excellent which resulted in the occurrence of com- the suitability of personal protective equip- results stated in the conclusions of these pletely unnecessary industrial accidents. ment and its qualitative improvement as a inspections, which also points to the very In this respect, it is necessary to constantly matter of course. decent level of our company’s approach to call for deliberation and prudence aimed at When assessing the occupational safety, it is occupational safety and the high standard safety in the performance of work activities worth noting that we are still facing a lot of of compliance with its rules in working con- as well as OSH education and training of the effort to improve the safety of the technical ditions. employees at individual workplaces. and technological facilities administered by social dialogue Similarly to previous years, in cooperation logue. “Amendment 1 – Rules of the Social company demonstrates social responsibility with our social partner we managed to Fund Use” is also part of the Collective Ag- towards its employees thanks to the social achieve a social reconciliation in collective reement. The Social Fund is one of the basic fund structure thus created. In 2016 the cre- bargaining, resulting in the conclusion of sources of the applied social policy in the ation of the Social Fund amounted to EUR the Collective Agreement for 2016. company. The creation of the Social Fund is 140 thousand. WAGE VALORIZATION was the most signifi- set to a maximum statutory value of 1.5% cant agreed changes within the social dia- of the gross wages accounted for, and the

a detailed creation and social fund in 2016 spending overview

Social Fund Budget of StVPS, a.s. Plan for 2016 Draw in € k 31/12/2016

Initial status to the date of 1. 1. 2016 85,967.33 127,967.00 Social fund creation (1.5%) 136,829.74 139,676.31 Allocation from the Company’s Profit 42,000.00 53,847.00 Creation in total 264,797.07 321,490.83 One-time non-refundable aid 1,660.00 830.00 Contribution to catering 81,825.00 78,850.05 Contribution for blood-donors 500.00 566.00 Contribution for plasma donors 500.00 0.00 Programme Benefit Plus 40,000.00 110,744.76 Total expenses 124,485.00 190,990.81 Reserve/presumptive balance 31/12/2016 140,312.07 130,500.02

34 ANNUAL REPORT 2016 35 The energy recovery of sludge generated by waste water treatment is the company’s priority. The aim of this activity was, in addition to the economic effect, to reduce the environmental burden caused by the extraction of fossil fuels and natural gas and to waste reduce the production of waste – sludge from municipal waste water treatment. WE MANAGED TO GET FROM THE PRODUCED management BIODEGRADABLE WASTE:

2,040 11,971 1,932,202 MWh GJ m3 In connection with the environmental policy of our company, we have ensured the recovery of waste that was disposed of ELECTRICITY HEAT BIOGAS by landfill in the previous period; the funds saved were PRODUCED GENERATING reused to improve the environment, especially

in the area of waste storage on our premises. THE TOTAL COSTS OF WASTE AND SLUDGE DISPOSAL, INCLUDING TRANSPORT Other waste management activities were mainly focused COSTS INCURRED IN 2016, AMOUNTED TO EUR 1,011 THOUSAND. IN 2016, 11,275 TONNES OF SLUDGE WAS GENERATED, WHICH IS CONSIDERED on the rigorous separation of waste and the improvement A BY-PRODUCT AND NOT WASTE ACCORDING TO THE FINAL DECISION of the possibilities of its collection in our plants. OF THE DISTRICT OFFICE IN BANSKÁ BYSTRICA.

Total waste production in 2015 was 27,838 tons, Another 10 types of waste from production: of these:

4.5 t HAZARDOUS WASTE WASTE FROM EXCAVATED FROM GRIT BITUMINOUS THE SEWAGE RAKES FROM WASTE SOIL CATCHERS MIXTURES CLEANING BAR SCREENS SLUDGE FROM 7,529 t 1,035 t 1,017 t 654 t 467 t WASTEWATER TREATMENT OTHER WASTE of these, 11,131 t THE SLUDGE MIXED MIXTURES GREASE & OIL 27,833.5 t (12,022 t) WASTE FROM OF MUNICIPAL MIXTURE FROM METALS PAPER AND CONSTRUCTION WASTE SEPARATOR CARDBOARD 258 t 28 t 20 t 10 t 4 t SLUDGES FROM WATER 891 t CLARIFICATION

36 ANNUAL REPORT 2016 37 ISO

The overall customer satisfaction is very im- ment in relation to our customers and also a ment Systems STN EN ISO 50001:2012. The of Forest Certification (“PEFC”), the company portant for our joint-stock company, so we try basis for continuous improvement. audit has reviewed selected articles of ISO, demonstrates its commitment to promoting to constantly optimise our internal processes, In 2016, our company successfully completed OHSAS standards, and it has been reconfirmed socially responsible business. Our company ac- and thus improve the quality of our services. the recertification audit of Quality Manage- that our system complies with their require- cepted this commitment by signing the “Mem- IThe Integrated Management System is cur- ment System STN EN ISO 9001:2016 and the ments. The audits were carried out in the facil- orandum on the Promotion of Sustainable For- rently an integral part of our company’s man- supervisory audits of Environmental Manage- ities and premises of the plants in Zvolen, Žiar est Management” and declares it through its agement, and we use it in all our manufac- ment System STN EN ISO 14001:2005, Occu- nad Hronom, and Veľký Krtíš. environmental policy. We use the logo of the turing processes and activities. This system pational Health and Safety Assessment Series By purchasing and using the paper certified association “PEFC Slovensko” (“PEFC Slovakia”) has become a fundamental progressive ele- STN OHSAS 18001:2009 and Energy Manage- under the Programme for the Endorsement to label our printed materials.

38 ANNUAL REPORT 2016 39 The first measures started to be implemen- ted in selected areas as part of the project “Biodiversity Conservation in Technical Areas”, and the adjustment of the areas of the Rakytovce waste water treatment plant (WWTP) will be completed in cooperation with the civic association Ekopolis in 2017. Supporting what solutions biodiversity has been one of our company‘s do we use?

long-term commitments • regular mowing for the suppression of ruderal species and restoration of to sustainable grassland, meadows of natural character. environmental • adding domestic deciduous trees and shrubs according to local ecological condi- protection. tions, replacing foreign woody plants by environmental them. • building bird and insect shelters (nesting boxes, insect hotels) In the water reservoirs of Križmanovo and Dúbravka, bees are kept by the system of the so-called natural bee-keeping in coope- protection ration with local bee-keepers. and biodiversity promotion education and training,

Under the environmental protection educational legislation, we have met the reporting activities We regularly organise our own educational obligation to ensure financial coverage and training projects, and we also familiarise the general public with the issue of the protection of water and water resources. In of the liability for environmental damage, 2016 we organised several events: • the World Water Day events – presentations for including the anticipated costs of corrective the public, lectures at schools; activities and corrective measures to remove • the Water Is Life exhibition (in cooperation with the Slovak Environment Agency) and accompanying activities related to the exhibition environmental damage that may be in Lučenec; • the school project “Tajný život vody” (iThe caused by the operator’s work. Secret Life of Water) organised in cooperation with the Centre of Environmental and Ethics Education Živica; • participation in the water management exhibition “AQUA 2016”; • financial support of the revitalisation of the natural monuments of Mičínske and Moštenické travertíny; • promotion of bee-keeping on a natural basis in the water reservoirs of StVPS, a.s.; • presentation at the event “Dni stromu” (The Tree Day)

40 ANNUAL REPORT 2016 41 innovations sewage water treatment treatment plants plants

In 2016, the following measures and innova- In 2016, the following measures and innova- tions were implemented in the technology of tions were implemented in the technology waste water treatment and operation of waste of drinking water and operation of water water treatment plants (WWTP): treatment plants (WTP): • the trial operation of the construction “WWTP • as part of the preparation of the renovation Podbrezová - Intensification” was carried out; the of the WTP Hriňová, the designer of the propo- new technological line of WWTP ensures the sed technology continued its testing; innovations quality of the treated waste water in accordance • the preparation of renovations of the WTP with applicable legislation; Klenovec and WTP Malinec continued with the • the construction “Divín – WWTP, Supplementati- provision of building permits and selection of on of Relieving, Mechanical Pretreatment and Terti- contractors; ary Stage” was completed, within which a new re- • in 2016, the renovation of the technology lieving stage and a new mechanical pretreatment in the WTP Behynce was completed, focusing were built and a biological stage was intensified; especially on waste water treatment in accor- • after the completion, the trial operation of dance with the permit conditions for waste Investments the construction “Halič - Sewerage System and water discharge, and the test operation of the WWTP Extension” was carried out, which was construction took place in the period of 05- in the modernisation of aimed at completing the sewerage system in the 10/2016; village of Halič, draining the village of Stará Halič, • a deacidifying filter was added to the existing technologies, thanks to which increasing the capacity of the WWTP Halič and technology in the water reservoir of the village ensuring the quality of the treated water as re- of Sihla for improvement of the quality of the we can also provide services in quired by applicable legislation; the construction drinking water supplied in view of these indi- was co-financed by the EU funds; cators: colour, turbidity, iron content, and limi- maximum quality in the future • the trial operation of the construction “Poltár - tation of pipe corrosion; Sewerage System and WWTP Intensification” was • the water direct hardening technology star- and to the satisfaction of our customers, carried out, where the relief structures on the ne- ted to be implemented in the WTP Turček in twork were renovated and the WWTP was intensi- order to minimise the corrosion of water pipes are a must these days. Apart from fied in order to remove nutrients; the construction and the formation of secondary iron in the was co-financed by the EU funds; supplied drinking water; increasing the efficiency of our services, • the trial operation of the construction “Krupina • the supply of alkalised water started for the – Sewerage System and WWTP” was carried out, village of Klenovec, and the pumping station the investments are also essential where new relief structures on the network and (PS) was modernised in the WTP Klenovec for new sewerage sections were constructed and a the village of Klenovec; for protecting the environment new WWTP for the town of Krupina was built; the • the occurrence of cyanobacteria continued to construction was co-financed by the EU funds; be monitored on the water reservoirs and the and ensuring the safety • the approval decision was issued for permanent WTPs Turček, Málinec, Hriňová and Klenovec in operation of the construction “Drainage System accordance with the guidelines of the Regional of the water supply and Waste Water Treatment in the District of Public Health Authority; an invasive red fibrous Prievidza – I. Stage”, where sewerage systems cyanobacterium Planktothrix rubescens occu- network. were built in the villages Kocurany and Opatovce rred on the Turček water reservoir for the first nad Nitrou, and the biological level of the WWTP time; a continuous laser particle counter was Prievidza was intensified to increase the capacity purchased for the operational detection of the and remove nutrients; the construction was co- increased number of cyanobacteria in raw wa- -financed by the EU funds; ter supplied from the Turček water reservoir; • the intensification of the aeration system in the • drinking water disinfection was improved in WWTP Donovaly was completed; the villages of Oravce, Lučatín, Horné Pršany, • II. stage of the renovation of the control system in and Pohronský Bukovec by purchasing new do- the WWTP Rimavská Sobota was carried out; sing pumps ChemAd-A and modernising water • in 2016, the construction of the WWTP for the Ví- disinfection with UV radiation in the WTP Po- gľaš industrial park was performed thanks to the hronský Bukovec; investments of the village of Vígľaš; In December • in 2016, water mains were equipped with 2016, a contract for the operation of this WWTP portable disinfecting devices and simple am- was signed with the village of Vígľaš; monium ion detection kits for ascertaining • contractual technical assistance continued to be pro- potential contamination of drinking water by vided regarding water management and the WWTP waste water during repairs of faults on the wa- of PSA Peugeot Trnava for the company Sloveo; ter supply network;

42 ANNUAL REPORT 2016 43 innovations pumping stations and water reservoirs

The following actions were taken in the Petrovce, Studená, Padarovce, Tisovec, Detva area of innovation and modernisation of and of the pumping stations in Kyjatice, Stu- pumping stations and water reservoirs: dená, Hostišovce, Suché Brezovo, Plachtince; • modernisation of the sodium hypochlori- • modernisation of pumping equipment of te dispensers in Modrý Kameň and Príbelce the pumping stations in Kozelník, Dolná Mi- water reservoirs. čina, Plachtince, Dobrá Niva, Banský Stude- • replacement of the pressure vessel in Hos- In order to improve the energy efficiency and nec, Dvorníky; tice pumping station; In 2016, reduce the energy intensity of the processes in • repairs of electrical installations in water re- • repair of the waterproofness of storage energy the monitored period, we performed specific servoirs in Badín, Dolná Mičina, Horné Prša- tanks in water reservoirs Horná Lehota electricity tasks arising from the adopted short-term and ny, Priechod, Vlkanová, Hnúšťa, and Klenovec; (Trangoška) and Telgárt (Pod Smrečinkou); and natural long-term energy objectives, corrective and • repairs of building parts of the water re- • 3 storage reservoirs are being construc- preventive measures focused mainly on: servoirs in Banská Bystrica (distribution wa- ted within the project “Water Supply from gas consump- ter reservoirs Hrby II, Rudlová-Sásová V, Fon- the Additional Water Resource Tajov” with tion was • elimination of deficiencies detected after čorda II, Pivovar), Badín, Králiky, Staré Hory, planned completion by the end of 2017; carrying out official testing, revisions and in- Valaská, Lehôtka, Halič, Divín, Lučenec (Vini- • construction of a new automatic pressure sta- governed by spections of dedicated electrical and gas equip- ca II), Valaská Belá, Sklené, Kružno, Jesenské, tion in the village of Čierny Balog, part Fajtov; agreed busi- ment in order to ensure the safety and reliabil- ity of the operation of WWTPs, WTPs and PSs; ness terms • replacement of obsolete pumps by pumps sewerage and commer- with higher efficiency and fluent regulation - in pumping stations of WWTP Detva, WWTP network cial contracts Žiar nad Hronom, WWTP Lučenec, PS Lehota concluded on pod Vtáčnikom and PS Dobrá Niva; In the field of innovations of sewerage ne- renovations consist in fitting the structures • optimization of external lighting - replace- tworks, the document “Technical Standards of with devices for capturing floating and drif- the basis ment of non-economic light sources with Water Management Structures” has been ela- ting substances from relieved waste water, of bids. expired lifetime in Lučenec and Žiar nad borated; it will clarify and enhance the prepa- control devices and I&C systems to monitor Hronom WWTPs; ration of projects and performance of construc- the operation of the relief chambers. These • maximum use of sludge gas from waste tion work, which will have an impact on the adjustments will result in a reduction in the water treatment plants for electricity and higher quality of structures put into operation. burden of recipients by waste water pollu- The share of the total heat production - in Banská Bystrica, Zvolen, tion. In 2016 the renovations of the relief energy costs and fuels: Lučenec, Brezno and Prievidza WWTPs; In 2016 relief chambers on the sewerage chambers in Valaská, Dudince and Veľký Krtíš • reduction of flat rates for the amount of the re- networks continued to be renovated. These were completed and the structures in Banská NATURAL GAS served MW capacity and the current value of the renovations are performed for the purpo- Bystrica started to be renovated. We are pre- OTHER AND HEAT circuit breakers before invoicing measurement; FUELS se of making the status of the structures paring the renovation of the relief chambers In 2016, the company performed the tasks compliant with applicable legislation. The in Zvolen and Nová Baňa. 0.9 % 9.5 % arising from the ISO 50001 Energy Manage- ment System focused on the management of energy media and the reduction of the process energy intensity, which was stated information systems and in the report of the external audit carried out by the certified company TUV SUD Slovakia automatic process control system at selected plants in Veľký Krtíš and Zvolen. The use of renewable sources in electrici- • In 2016, a newly-introduced technical-in- the sewerage network in Bojnice, Kocura- ty production from biogas by cogeneration formation system with on-line output of ny and Opatovce and 10 relief chambers in units of WWTPs in Banská Bystrica, Zvolen current accidents on the company’s website Prievidza were connected to the central data and Lučenec with power of 2,040,375 MW was used to record faults and accidents on collection. enabled savings of electricity consumption the water supply network. • At present, a total of 302 water mains costs of ca. EUR 210,787.00 and increase in • In the plant in Rimavská Sobota, problems structures and 104 sewerage structures are energy self-sufficiency from 6.45% to 6.56% with insufficient signal when transmitting connected to the control room and remote compared to 2015. data from water reservoirs around Tisovec access to 16 WWTPs is established to mo- 89.6 % to the hotline were solved. nitor the operation of technologies of the ELECTRIC • In 2016, other 8 new pumping stations of waste water treatment plants. POWER

44 ANNUAL REPORT 2016 45 financial comments on financial results for 2016

The economic result (ER) of our company The company is drawing down a medium- part after tax decreased by 56.3% in comparison term loan of €4,600 thousand from Veolia to the year 2015. The decrease in ER Environnement Finance, Paris. Apart from was caused by a decrease in revenues of that, the company was drawing down a 4.0% compared with 2015. The company short-term loan of €3,250 thousand from achieved a positive economic result of Veolia Environnement Finance, Paris, for the €1,175 thousand after tax for 2016. This purpose of financing operating costs. result was achieved by the company with The overall financial situation of the total revenues of €56,486 thousand and company was stable throughout the total costs of €54,901 thousand. The current whole year and the company fulfilled all income tax was €52 thousand and the of its commitments in a timely and orderly deferred tax was €358 thousand. manner. Such commitments were mainly Other services remained the biggest cost toward employees, private and state item of last year at €22,897 thousand, the institutions, partners and other suppliers. The company majority of which was comprised of renting Despite the achievement of a positive infrastructure and subcontracting. Other economic result, a decrease in owner’s reached an economic significant cost items included personnel equity occurred due to a payment of costs of €16,801 thousand, material costs dividends to a shareholder. The basic capital result - a profit of of €3,998 thousand, energy consumption of the company remained unchanged at costs of €3,731 thousand, and repairs and €34 thousand. € 1,175,246 maintenance costs of €3,036 thousand. The value of the total assets of the company after tax was €19,913 thousand, out of which €4,989 thousand was the residual value of the non-current assets. Investments of €1,686 thousand were directed towards modernisation of tangible and intangible assets with the aim of increasing consumer satisfaction.

46 ANNUAL REPORT 2016 47 comment about development of water prices excluding VAT maximum prices in the years 2006 - 2016

for the year 2016 1.1700 € 2016 1.1700 € 2015 During the whole year of 2016, a maximum price for the production and supply of drinking water through public water supply and drainage and treatment of wastewater by public sewerage was 1.1700 € 2014 valid in the following amounts (excluding VAT): 1.1169 € 2013 1.1022 € 2012 1.0121 € 2011 0.9639 € 2010 1.1700 €/m3 0.9313 € 2009 0.8929 € 2008 Maximum price for production 0.8514 € 2007 and supply of drinking water by means of public 0.8929 € 2006 water networks

0.6622 €/m3 development of Maximum price for producing wastewater prices and distributing drinking water by means of public water excluding VAT in the years 2006 - 2016 1.0983 € 2016 1.0983 € 2015 1.0983 € 2014 1.0983 €/m3 1.0663 € 2013 1.0443 € 2012 Maximum price for the disposal and treatment of waste water 0.9625 € 2011 by public sewerage 0.9167 € 2010 0.8764 € 2009 0.8033 € 2008 0.7635 € 2007 These prices were determined by the Regulatory Office for Network Industries by Decision No. 0088/2014/V dated 21/11/2013 and later Decision No. 0136/2014/V dated 23/07/2014 0.7781 € 2006 adjusting a price only for drinking water.

48 ANNUAL REPORT 2016 49 BALANCE SHEET 31st December 2016 (in EUR)

Previous Immediately Current Accounting Period Immediate Accounting Line Current accounting Code ASSETS Line Code EQUITY AND LIABILITIES preceding Period Number period accounting period Gross- Part 1 a b c 4 5 a b c 1 Correction- Part 2 Nett 2 Nett 3 33,218,901 Total assets l. 02 + l. 33 + l. 74 01 19,913,242 20,465,653 TOTAL EQUITY AND LIABILITIES 13,305,659 l. 80 + l. 101 + l. 141 79 19,913,242 20,465,653 16,553,578 A. Total long-term intangible fixed assets (l. 04 to l. 10) 02 4,988,658 4,627,153 11,564,920 A. Equity capital l.81+l.85+l.86+l.87+l.90+l.93+l.97+l.100 80 4,491,843 5,986,848 2,123,559 A.I. Long-term intangible fixed assets sum (l. 04 to l. 10) 03 667,559 583,110 A.I. Total registered capital (l.82 to l.84) 81 34,000 34,000 1,456,000 2,034,106 2. Software 05 578,106 513,194 A.I.1. Registred capital 82 34,000 34,000 1,456,000 89,453 A.II. Share premium account 85 6. Procure intangible fixed assets 09 89,453 69,916 A.III. Other capital funds 86 4,444,123 4,444,123 14 400,921 A.II. Long-term intangible fixed assets in acquisition 11 4,292,001 4,037,019 (l. 12 to l. 20) 10 108,920 A.IV. Legal reserve fund (l.88+l.89) 87 10,120 10,120 7,050 2. Buildings 13 3,767 4,355 3,283 A.IV.1. Legal reserve fund, indivisible fund 88 10,120 10,120 14,388,417 3. Individual movable assets and sets of movable assets 14 4,282,780 4,032,664 10,105,637 A.V. Other funds from profit (l.91+l.92) 90 3,700 6. Other non-current tangible assets 17 3,700 A.VI. Revaluation differences sum (l.94+96) 93 -1,171,646 -1,193,720 1,754 A.VI.1. Revaluation differences of assets and liabilities 94 -1,171,646 -1,193,720 7. Tangible fixed assets 18 1,754 29,098 A.VII. Profit/Loss from previous years l.98 + l.99 97 A.III. Non-current financial assets total (l. 22 to l. 29) 21 29,098 7,024 A.VII.1. Previous years retained profit non-devided 98 923 A.III.1 Shares and participations in subsidiaries 22 923 2,024 A.VIII. Profit for the period after taxation 100 1,175,246 2,692,325 28,175 (+/-) l.01 – (l.81+l.85+l.86+l.87+l.90+l.93+97+101+141) 2 Shares and ownership interests with substantial influence 23 28,175 5,000 B. Liabilities l. 102+118+121+122+136+139+140 101 15,414,709 14,472,221 16,428,400 B. Current assets l. 34 + l. 41 + l. 53 + l. 66 + l. 71 33 14,687,661 15,762,185 1,740,739 B.I. Provisions total (l. 103+107 to 117) 102 4,753,877 4,727,967 615,936 B.I. Inventory total (l. 35 + l. 40) 34 569,003 567,901 46,933 B.I.1. Long-term trade payables (l. 104+l. 106) 103 23,377 615,361 B. I.1. Material 35 568,428 566,491 1.c. Other trade payables 106 23,377 46,933 575 6. Advance payments for inventory 40 575 1,410 3. Other liabilities to affiliated accounting units 108 4,600,000 4,600,000 277,749 9. Social fund liabilities 114 130,500 127,967 B.II. Long-term receivables total (l. 42 + l. 46 + l. 52) 41 277,749 635,676 5,982 B.IV. Short-term liabilities total (l.123+127 to 135) 122 9,278,251 8,271,104 B.II.1. Trade accounts receivable (l. 43 + l. 45) 42 5,982 5,982 B.IV.1 Trade payables sum (l. 124 to 126) 123 3,511,853 4,741,927 5,982 1.c. Other trade accounts receivable 45 5,982 5,982 1.a. Labilities to affiliated accounting units 124 433,260 251,012 271,767 8. Deferred tax assets 52 271,767 629,694 Trade payables in a participating interest, other than 1.b. liabilities to related entities 125 7,447 14,293,961 B.III. Current receivables total (l. 54 + l. 58 + l. 65) 53 12,600,155 11,779,528 1,693,806 1.c. Other trade payables 126 3,071,146 4,490,915 12,732,938 B.III.1. Trade accounts receivable (l. 55 to l.57) 54 11,039,132 11,732,839 1,693,806 3. Other liabilities to affiliated accounting units 128 3,250,671 152,612 1.a. Trade accounts receivable 55 152,612 1,026,692 6. Liabilities to employees 131 766,866 761,916 12,580,326 1.c. Other trade accounts receivable 57 10,886,520 10,706,147 7. Social insurance payables 132 548,524 562,035 1,693,806 2,375 8. Tax liabilities and subsidies 133 1,087,223 2,084,309 2. Net value of contract 58 2,375 29,978 962 10. Other payables 135 113,114 120,917 3. Other receivables from related entities 59 962 B.V. Short-term reserves (l.137+138) 136 1,382,581 1,473,150 1,532,096 7. Deferred tax assets 63 1,532,096 B.V.1. Statutory reserves 137 63,833 43,489 25,590 9. Other receivables 65 25,590 16,711 2. Others reserves 138 1,318,748 1,429,661 1,240,754 B.V. Total financial accounts (l. 72 to l. 73) 71 1,240,754 2,779,080 B.VI. Current bank loans 139 19,660 B.V.1. Cash 72 19,660 19,259 C. Total accruals and deferrals (l. 142 to l. 145) 141 6,690 6,584 1,221,094 2. Short-term deferred expences 143 6,621 6,280 2. Bank acconts 73 1,221,094 2,759,821 236,923 4. Short-term deferred revenues 145 69 304 C. Total accruals and deferrals (l. 75 to l. 78) 74 236,923 76,315 140,130 C.1. Long-term prepaid expenses 75 140,130 2,116 96,793 2. Short-term prepaid expenses 76 96,793 74,199

50 ANNUAL REPORT 2016 51 st Profit and Loss Account Statement to 31 December 2016 (in EUR) Cash Flow Statement to 31st December 2016 (in EUR) Real status Line Code Item Number Current Immediately preceding 2016 (EUR) 2015 (EUR) accounting period accounting period CASH FLOW FROM OPERATIONAL ACTIVITIES a b c 1 2 Cash flow from the operation 5,325,287 5,996,696 * Net turnover (part acc. 6 under the Law) 01 54,997,268 58,006,628 Interests paid -100,862 -109,851 ** Revenues from economic activity Total Total (l. 03-09) 02 56,486,260 58,897,476 Interests received 130 1,293 I. Revenue from sale of goods 03 618,850 Income tax paid -2,461,982 -707,735 III. Revenues from services 05 54,997,268 57,387,779 Dividends payment -2,638,478 -3,906,046 V. Activating 07 23,702 24,008 Cash flow before exceptional items 124,095 1,274,357 VI. Sales of fixed intangible assets tangible fixed assets and materials 08 9,734 7,229 Income from exceptional items 0 0 VII. Other revenues from economic activity 09 1,455,556 859,610 Net cash flow from operational activities 124,095 1,274,357 ** Operating expenses in total l.11+12+13+14+15+20+21+24+25+26 10 54,776,525 55,262,349 A. Costs incurred to acquire the goods sold 11 618,850 CASH FLOW FROM INVESTMENT ACTIVITIES B. Consumed material, energy and other non-inventory items 12 9,249,288 9,392,018 Purchase of long-term assets -1,694,604 -1,033,968 C. Adjusting items to provisions 13 11,429 32,228 Receipts from sale of long-term assets 8,806 7,229 D. Services 14 26,010,670 25,884,569 Net cash flow from investment activities -1,685,798 -1,026,739 E. Personnel costs total 15 16,800,977 16,194,748 E.1. Wages and salaries 16 11,620,900 11,092,574 CASH FLOW FROM FINANCIAL ACTIVITIES 2. Remuneration of board and co-operative members 17 106,154 102,902 Incomes from credits-group 0 0 3. Social insurance cost 18 4,211,218 4,088,832 Incomes from credits 0 0 4. Social costs 19 862,705 910,440 Long-term liabilities 23,377 F. Taxes and charges 20 1,246,502 1,505,607 Net cash flow from financial activities 23,377 0 Depreciations and rectifying items to long-term intangible G. 21 1,350,024 1,233,143 and long-term tangible fixed assets (l.22+23) (Decrease) increase of cash and cash equivalents -1,538,327 247,618 G.1. Depreciation of intangible and tangible assets 22 1,350,024 1,233,143 Cash and cash equivalents at the beginning of the accounting year 2,779,080 2,531,462 H. Net book value of fixed assets and inventory sold 24 6,006 6,993 Cash and cash equivalents at the end of the accounting year 1,240,754 2,779,080 I. Provisions for receivables 25 109,481 120,005 J. Other operating expenses 26 -7,852 274,188 *** Profit from operations (l. 02 to l. 10) 27 1,709,735 3,635,127 * Added value (l.03+04+05+06+07) – (l.11+12+13+14) 28 19,749,583 22,102,972 Expenses from financial activities in total NET PROFIT ** 29 189 1,334 (before deduction of interests, taxes and extraordinary items) 1,685,976 3,616,988 (l.30+31+35+39+42+43+44) Adjustments by non-cash transactions: XI. Profit taxes (l. 40 + l. 41) 39 130 1,293 Depreciations of long-term tangible and intangible assets 1,350,024 1,233,143 XI.1. Interest income from related entities 40 -2 Rectifying item to receivables 70,124 71,301 2. Other profit taxes 41 132 1,293 Rectifying item to inventories 11,429 32,228 XII. Foreign exchange gain 42 59 41 Reserves -90,569 -65,310 Income from financial activities in total ** 45 124,680 128,032 Other non-cash items -3,657 -7,229 (l.46+47+48+49+52+53+54) 3,023,327 4,881,120 N. Interest expenses (l.50+51) 49 100,862 109,851 Profit from current activities before change in working capital

N.1. Interest expense to related entities 50 100,862 109,851 Change in working capital: O. Exchange losses 52 1,015 739 Decrease (increase) of receivables from business relation 460,941 -80,631 Q. Other expenses on financial activities 54 22,803 17,442 and other receivables (including accruals and deferrals of assets) *** Profit / loss from financing activities (from l. 29 to l. 45) 55 -124,491 -126,698 Decrease (increase) of inventories -12,531 -24,159 **** Economic result for the period (+/-) ( l. 27 + l. 55) 56 1,585,244 3,508,429 (Decrease) increase of liabilities (including accruals and deferrals of liabilities) 1,853,550 1,220,366 R. Income tax (l. 58 + l. 55) 57 409,998 816,104 R.1. Income tax payable 58 52,071 1,553,703 Cash flow from current activities 5,325,287 5,996,696 2. Income tax deffered 59 357,927 -737,599 **** Profit / loss from extraordinary activities after taxation 61 1,175,246 2,692,325

52 ANNUAL REPORT 2016 53 Independent Auditor’s Report

54 ANNUAL REPORT 2016 55 56 ANNUAL REPORT 2016 57 Report by the

supervisory board REPORT OF SUPERVISORY BOARD 2016 OF THE COMPANY StVPS, a. s.

At its meeting, the Supervisory Board examined the annual (ordinary) financial statements pursuant to Section 198 of the Commercial Code and Art. XII. parag. 4 of the Company’s Articles of Incorporation and reviewed the Company’s draft annual report for 2016.

After examining the financial statements for 2016 and the independent auditor’s report by KPMG Slovensko spol. s r.o., the Supervisory Board states that the Company keeps the books and records in accordance with the Accounting Act and internal regulations. It also takes account of the auditor’s conditional opinion on the one-time write-down of goodwill at the discretion of the sole shareholder and states that no deficiencies have been identified that would impede the approval ofthe Company’s financial statements and its annual report for 2016.

The Company reported a profit after tax of EUR 1,175,246 for the year 2016. The Supervisory Board further discussed the Board of Directors’ proposal for profit distribution.

It does not have any comments on these documents and advises the General Meeting to approve the financial statements, the annual report and the profit distribution.

In Banska Bystrica, on July 3, 2017

Tomáš Paclík predseda dozornej rady

58 ANNUAL REPORT 2016 59 ANNUAL REPORT

Stredoslovenská vodárenská prevádzková spoločnosť, a. s. Partizánska cesta 5, 974 01 Banská Bystrica Tel.: 048/ 4327 111 e-mail: [email protected], www.stvps.sk Call centrum 0850 111 234 e-mail: [email protected] | fax: +421 48 4327 888 www.stvps.sk

CUSTOMER CENTERS

Banská Bystrica Partizánska 73, 974 01 BB Prievidza V. Clementisa 52, 971 55 PD Lučenec Komenského 4, 984 53 LC Rimavská Sobota Duklianskych hrdinov 42, 979 01 RS Veľký Krtíš Banícka 39, 990 01 VK Brezno Sekurisova 4, 977 01 BR Žiar nad Hronom SNP 125, 965 01 ZH Zvolen Ľ. Štúra 2208/15, 960 01 ZV

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Issued by: StVPS, a.s. (Banská Bystrica 2017)